Self Build Mortgages
The biggest difference between self-build mortgages and standard residential mortgages is that the funds are released to you at various stages of the build rather than as a single lump sum. The reason the Mortgage lender does this, is to reduce any risk and ensure that the money is spent as planned so you don’t run out when you are only half way through the project.
The final payments will be made when the roof is watertight and then when the interior walls are plastered, and the last instalment is paid on completion.
Self-build mortgages are offered by specialist lenders, as well as some mainstream banks and building societies.
Various types of self-build mortgages are available
However, there are some self-build mortgages release the money required for each stage of the build at the beginning rather than the end of the stage. This is particularly useful if you don’t have the cash up front to pay your builders or to buy materials.
Save on stamp duty payments
The potential financial gains from building your own home are another advantage, normally your finished property is worth much more than it cost them to construct.
Interest rates on self-build mortgages tend to be higher than on standard mortgages, so it’s important that you do your research well before you decide which mortgage is the one for you.
At Yes Specialist Mortgages, we offer a range of specialist mortgages, including self-build mortgages. You can sit down and speak to one of our qualified mortgage advisers, explain your plans and we’ll find a mortgage that we think is right for your circumstances.
Often with self-build mortgage applications, there is more paperwork to fill out as you’ll have to submit your plans e.g. planning permission, building plans, financial forecasts for the costs you’re likely to incur etc. Our specialist mortgage advisors will take care of the whole mortgage application, from beginning to end, including dealing with any paperwork required, leaving you to concentrate on the exciting bits; the actual build!